There is optimism among Balearic businesses. | Archive


Businesspeople and company directors in the Balearics, who have taken part in a survey by consultants KPMG, are pointing to an ever improving economic condition as the reason for taking on more staff this year.

The survey forms the basis for the KPMG report "Perspectives Spain" on behalf of the Spanish Confederation of Business Organisations (CEOE). Half of those surveyed in the Balearics say that they plan increasing staff levels this year, while 41% will maintain existing levels. In Spain as a whole, 46% of businesses intend to employ more people.

Juan Rosell, the president of CEOE, observes that factors which prompted very significant growth rates in 2015 and 2016 will continue in 2017, but he notes that there are other factors dragging the economy back, notably the still high rate of unemployment and high levels of public and private sector debt.

Although in general terms there is economic improvement across Spain, businesspeople in the Balearics are more optimistic than most. They are anticipating growth in sales and investment this year, but this expectation is not universally shared. In Asturias and Extremadura, for instance, business pessimism has increased.

Three-quarters of the Balearic respondents consider the current economic situation to be good or very good, while 49% expect an improvement this year and 48% believe things will remain as they are. Such optimism isn't altogether surprising, given forecasts for the tourism season and the fact that is getting longer.

As means of boosting business further, Balearic respondents want there to be simplified bureaucracy and improvements to education. Rosell notes issues that government must not overlook, such as progress in pensions' reform, tax reductions and education.

When it comes to strategic priorities in the Balearics, businesses identify process improvement and new product development, with differentiation being essential for growth.